With first-quarter construction starts trending above 2021 activity, the industry’s need to attract and retain talent is on the rise as well. At the executive level, companies are not only eyeing current needs, but also future succession plans, prompting firms to offer compensation increases that have not been seen in more than a decade.
In 2021, executives saw a 4.3% increase in base salary over 2020, according to industry compensation research firm PAS. That bump followed a slight pullback in 2020—attributed to pandemic shutdowns—when increases averaged 3.8%. Firms that responded to the PAS 2022 Executive Compensation Survey for Contractors estimated that 2022 salary increases will hold at 4.3% this year. However, Jeff Robinson, president of PAS, says that he sees firms already pushing above that. “I’m comfortable saying that we could see 4.8% this year and I wouldn’t be surprised if it hits 5%.”